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vesna_86 [32]
2 years ago
9

The current price of the futures contract is $30. A six-month call option on the futures contract with a strike price of $30 is

trading at a price of $4. What is the price of a six-month put option on this futures contract with the same strike price?
Business
1 answer:
babymother [125]2 years ago
7 0

Answer:

Put Price = $4

Explanation:

We are applying Put Call Parity Theorem. Future Price + Put Price = Call Price + Strike Price

$30 + Put Price = $4 + $30

Put Price = $4 + $30 - $30

Put Price = $4

Thus, the price of six month put option = $4

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